June 8, 2000 -- Because the federal income tax is the biggest and usually the first tax we see listed on our pay stubs, we naturally tend to focus on it.

But state government takes a bite out of our spending money, too. Bankrate will help you stay on top of what your localities are collecting -- income, sales, personal property or investment taxes, or often a combination of all.

Here's a look at some recent tax actions across the nation.

New Hampshire estate tax resuscitated
CONCORD -- New Hampshire's inheritance tax lives on, thanks to the cost of public education in the state.

New Hampshire officials said repealing the 18 percent inheritance tax would have cost the state an estimated $38 million a year. That was too high a price for Gov. Jeanne Shaheen, who vetoed the bill because lawmakers did not provide a way to make up the bill's cost to the treasury.

The fiscal problems arise primarily from a state court ruling that the state must find ways to pay for public education other than through property taxes. The governor's office says the education-funding problem has produced a budget shortfall of roughly $40 million. In addition to vetoing the estate tax legislation, Shaheen refused to enact three other less costly bills, instituted a hiring freeze and has ordered state department heads to cut budgets by 3 percent.

Tax rebates await Pennsylvania applicants
HARRISBURG -- Pennsylvania treasury officials are ready to start mailing out $100 checks to 3.3 million taxpayers. One catch: the residents have to apply for the money.

The Pennsylvania Department of Revenue began accepting applications for the refunds June 5 from qualified homeowners. Applications can be filed over the phone or through the state's Internet site. The toll-free phone line, 1-877-255-1775, will be staffed 8 a.m. to 5 p.m. weekdays. The Web site is available 24 hours a day.

The one-time rebate is a portion of Pennsylvania school district taxes paid in 1999 or 2000. Homeowners qualify for the rebate if they:

• Owned a Pennsylvania home on July 1, 1999;
• Occupied the home as their primary residence sometime between July 1, 1999, and June 30, 2000; and
• Paid in full their fiscal year 1999-2000 or calendar year 1999 school-district property taxes.

Homeowners must apply for the rebate by July 7. State officials say checks should be delivered in four to five months.

Pennsylvanians who have questions about the rebate may call the Revenue Department's toll-free, 24-hour service at 1-800-362-2050.

New York lawmakers look to expand taxpayer rights
ALBANY -- The New York State Senate has approved new taxpayer rights measures that include making it easier for individuals to get back any overpayments and to have their complaints heard.

Under S. 1229, state officials would have to disclose immediately any tax overpayments they discover during audit, assessment, collection or enforcement proceedings. The bill would give taxpayers 120 days to claim a refund.

Business taxpayers also would get some tax relief. S. 7117 would halve the number of electronic sales tax payments required by retailers to one a month.

For taxpayers who believe the state is not properly administering its tax laws, S.7909 would create a sympathetic ear in the form of a state Office of Taxpayer Advocate. Modeled after the Internal Revenue Service position, the advocate would serve as an ombudsman for taxpayers, hearing complaints and overseeing application of tax laws and revenue department policies.